Title: Announcement regarding issuance of Disciplinary Board Resolution No. (90/2021 Disciplinary Board) (78/2021 Authority) and imposition of a fine of 12 thousand Dinars against Al Imtiaz Investment Group Company for violating the rules of Securities Activities and Registered Persons, Clients’ Funds and Clients’ Assets, and Anti-Money Laundering and Combating Financing of Terrorism.

Announcement regarding issuance of Disciplinary Board Resolution No. (90/2021 Disciplinary Board) (78/2021 Authority) and imposition of a fine of 12 thousand Dinars against Al Imtiaz Investment Group Company for violating the rules of Securities Activities and Registered Persons, Clients’ Funds and Clients’ Assets, and Anti-Money Laundering and Combating Financing of Terrorism.

For the following reasons:
1- Provision of Item (1) of Article (3-2-6) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. (7) of 2010 and their amendments:
The Vice Head - Risk Management, Compliance and Anti-Money Laundering combined the functions of the Compliance Officer and Risk Management Officer at the Company.
2- Provision of Item (1) of Article (5-3-2) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. (7) of 2010 and their amendments:
It was proven to the Authority that there are (5) portfolio clients, the Company provided the inspection team of the Authority with their files during the inspection, while the Company did not report on these clients through the report sent by the Company to the Authority regarding the investment portfolios established with it, through which it was reported that there are no clients of portfolios until 30/09/2020.
3- Provision of Article (3-14) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. (7) of 2010 and their amendments:
The Company failed to classify some sample clients according to the risk factors defined by it and mentioned in the “client assessment and money laundering risks” form prepared by the Company.
4- Provision of Article (4-7) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. (7) of 2010 and their amendments:
The Company failed to keep records of the clients' due diligence procedures within the specified period (five years from the date of closing the account).
5- Provision of Article (7-3) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. (7) of 2010 and their amendments:
The Compliance and Money Laundering Officer registered with the Authority is not independent, as he reports to the Deputy Head of Risk Management, Compliance and Anti-Money Laundering, which is registered with the Authority as a risk management officer.
6- Provision of Article (18) of Ministerial Resolution No. (35) of 2019 regarding the executive bylaws of the Special Committee for the Implementation of Security Council Resolutions issued under Chapter VII of the Charter of the United Nations related to combating terrorism and financing the proliferation of weapons of mass destruction attached to CMA Circular No. (13) of 2019 issued on 15/09/2019:
The Company failed to check the names of its current clients and whether their names are included in the lists issued by the United Nations or the national list on an ongoing basis. They only verified the clients before commencing the establishment a relationship with them through World Check program. The Company only checked the national lists upon receiving such lists from competent authorities. Additionally, the Company did not check the terrorism lists of some clients, authorized signatories, and beneficial owners.

The Resolution included the infliction of the following penalty: -
“Al Imtiaz Investment Group Company is fined an amount of two thousand Dinars for each of the violations attributed to it”.

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.